Benchmarking Analysis of Toyota and Ford: A Holistic View of Financial and Non-Financial Aspects in the Automotive Industry

The dissertation offers an in-depth study of Toyota and Ford, concentrating on both of their financial and non-financial performances. The financial analysis comprises horizontal, vertical, and trend analyses that examine important performance metrics like gross profit, cost of goods sold, revenue, and different profitability ratios. With consistent increases in revenue, gross profit, and profitability ratios, Toyota's financial performance has traditionally been strong. Ford on the other hand, particularly during the COVID-19 epidemic, saw greater volatility. Furthermore, non-financial factors are examined, including market share and customer satisfaction. In terms of consumer satisfaction, Toyota constantly surpasses Ford, and it currently has a sizable market share lead worldwide. Discussions also include both organizations' growth objectives and strategic positioning. In the market for electric and hybrid vehicles, Toyota places a strong emphasis on cost leadership, innovation, and market expansion. Particularly in the field of electric vehicles, Ford places a strong emphasis on product development, differentiation, and market penetration. The report also contains SWOT (Strengths, Weaknesses, Opportunities, and Threats) analyses for both organisations, highlighting both internal and external opportunities and threats as well as strengths and weaknesses. The Price-to-Earnings (P/E) ratio, which suggests that Ford may be undervalued, and Toyota may be overvalued, is used to investigate investor potential. The patterns in stock prices are also shown, demonstrating how they change in reaction to different circumstances. Finally, a brief discussion of the human resources side is given, highlighting how crucial HR procedures are for both businesses. Ford emphasises hiring, training, and staff retention as important aspects of its HR strategy, while Toyota places a premium on flexibility, diversity, and employee development.

Published by: ResearchGate

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Sep 11, 2023